Baku. Ali Ahmadov – APA-Economics. Interest rates on business loans are very high in Azerbaijan and solution to this problem needs simplification of banks' access to the centralized credit resources, the State Councilor for Economic Issues Vahid Akhundov told APA-Economics.
Commenting on the dynamic growth in consumer loans during recent years in the country, Akhundov noted that the main role in development of the economy is not played by consumer, but by investment (business) loans: ‘But, unfortunately, business loans are very expensive in Azerbaijan’.
Akhundov added that even due to this matter, the government forced to create a National Fund for Entrepreneurship to support local businesses. He noted that if the banks are well developed, the need for such a fund will disappear.
‘Here, the main problem is the low competition between banks. In order to stimulate the business in the crisis-affected countries, the entrepreneurs are provided with free and low-cost means, and thus the crisis problem finds its solution. We have no crisis problem. But we have an investment problem, rather the problem of the cost of investment loans’, noted Akhundov.
Follow us on Telegram
t.me/apanewsaz
Follow us on Instagram
Follow us on TikTok
Follow us on Facebook
Follow us on X
